Are houses really that cheap in Kent?
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Posted by Alec at 11:13 am, March 2, 2007
Premium Bonds Again
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Interest rates are about 5% pa. House prices are rising at about 15% pa. He should have enough for a dolls house in 15 years.
Who says that your imaginary toddler’s going to invest the winnings in Premium Bonds? And interest rates most certainly DO apply to Premium Bonds – the prize ‘pot’ is calculated by applying the current interest rate to all current Premium Bonds. The total payout averages out at less interest than you’d get from a bank, but a FEW people earn much more.
Over £1000 worth of bonds in my immediate family, all held for around 40 years. £150 total winnings.
If I’d put £1,000 in the bank in 1966 I’d have earned about £6,000 interest.
A small error – I’d have made £16,000 interest.